In my experience, the main criteria to look for when betting on great dividend stocks is a … Our second pick is consumer staples manufacturer Clorox (CLX). Shipping giant FedEx (FDX, $217.40) technically should be on the outside looking in. Three numbers are especially helpful to the dividend investor. "Our Hold recommendation reflects our view that the shares are fairly valued versus peer and historical levels," writes CFRA analyst Catherine Seifert. For decades, income-minded investors have searched for the best dividend stocks out there. Clorox has a long history of dividend growth. The first safe dividend stock is Walmart (WMT), which is the largest retailer in the world, serving 270 million customers each week. Stock research group CFRA is much more bullish, with a Strong Buy rating on UFPI, noting that valuation, quality, growth, financial health and price momentum are all positive. I reveal 3 of the safest and highest paying dividend stocks of 2019. What won't change, though, is the safety of Home Depot's dividend. These are the best dividend stocks for 2021. It has grown into the eighth-largest pharmaceutical company in the world, primarily on the strength of its blockbuster biologic autoimmune drug Humira, the world’s number one drug by far with annual sales of about $19 billion. Walmart is a Dividend Aristocrat, having increased its dividend for 47 consecutive years. It has increased its dividend for 42 years in a row, including an impressive 10% increase in 2019. "BC saw surging demand in May and June for new boats and engines as well as 'record June retail for almost all our boat brands,'" writes Wedbush analyst James Hardiman (Outperform). The average S&P 500 payout ratio in 2019 was 42%. But the pandemic quickly threw a wrench in that outlook, as the unemployment rate soared from 3.5% in February to 14.7% in April, and the Federal Reserve slashed interest rates to zero in March. The company recently announced it would hold its payout at 44 cents quarterly for Q3, which is typically when its annual dividend hikes land. In 2017, the company closed on the massive $24 billion purchase of C.R. Some have slumped in 2020, while others have bucked the trend and shot meaningfully higher. View real-time stock prices and stock quotes for a full financial overview. Amid the uncertain outlook, investors could buy safe dividend stocks to strengthen their portfolios, as dividend stocks tend to outperform non-dividend-paying stocks during a … Follow. Apple (NASDAQ:AAPL) In a technological age, it is hardly surprising to find tech companies at the forefront of dividend stocks to consider. 1 Destination For Foreign Investment As Coronavirus Upends Global Economy, The Recovery Will Be Weaker And It Will Take Longer, Platforms, Presidents, & Politics – What The First Amendment Requires, Three Red Flags Money Managers Are Watching For In 2021, Here Are The Biggest Risks To Derail An Economic Recovery In 2021, Goldman Sachs Warns, Kinder Morgan And The Emerging Pipeline Shortage, Bernie Sanders Warns Republicans ‘Will Win’ In 2022 Midterms If Democrats Don’t Act Aggressively On Stimulus Now. Revenue will be … And remember: This is an outlier year. Naturally, the question for income investors is: Can such a battered company continue to pay its dividend? All Rights Reserved, This is a BETA experience. With an above-market dividend yield and a long history of dividend growth, Colgate-Palmolive is a dividend stock to hold during a recession. However, this was due to a lack of installations for the Alaris System pumps, which have been recalled due to software issues. This is a safe dividend stock, too. For younger investors, that's less money you can put back to work and compound over time. And despite the downdraft of the pandemic on the auto industry, the company's fundamentals are solid. The company also offers exclusive seminars-at-sea, with the investment industry's leading partners, such as Forbes. To … 9 Bank Stocks With Safe, Generous Dividends. Here, we'll use independent investment research firm Value Line's definition, which is net profits + depreciation minus preferred dividends. "BWA has now posted mid-single digit or higher market outgrowth in 13 of the past 14 quarters," write Credit Suisse analysts (Outperform), who believe that the company's outlook for decelerating outgrowth in the second half is likely on the conservative side. That number will be higher this year – closer to about 30% based on Value Line's estimates, which were cut nearly in half based on COVID-related troubles. However, not all high yield dividend stocks are safe. According to the company, it has 35 products that are either #1 or #2 in their category. That provides all sorts of room to maneuver, which it needs given starkly lower estimates for 2020 earnings. In my experience, the main criteria to look for when betting on great dividend stocks is a … Hello readers, this time I would like to share with you about the potential investment projects which will be able to give us quick passive income. Even in the recent coronavirus crisis, consumers still need soap, toothpaste, and pet food, which bodes very well for Colgate-Palmolive. Don't be. Is its dividend safe? Dividend safety first. American Water Works – … Another of the best dividend stocks to buy for 2021 is beverage and snack giant PepsiCo, a company with impressive diversification across geographies and business segments. Highest Safe-Yield Dividends in 2021 While a high yield is great, it isn’t necessarily the best option for investors. That's a fine benchmark, but in the spirit of finding truly safe dividend stocks, we're going to explore a group of companies with a payout ratio of 25% or less. For instance, domestic construction issues are dampening demand in its lift business, but business is picking up in China, where Oshkosh has a foothold. Meanwhile, OSK's payout has doubled since its resumption in 2013. American Financial Group (AFG, $67.36) is an insurance holding company that offers property and casualty insurance for business as well as annuities, primarily through its Great American subsidiary, an old line insurer that dates back to 1872. The safest dividend stocks would also provide dividend growth along with a tollbooth-like business which means cash is continuously flowing. BDX recently reported solid financial results for its fiscal 2020 first quarter. Solid yields in the 2 to 4% range can indicate a great total return and help not only produce income but also capital gains. rmel’s earnings-per-share actually grew during the Great Recession while most of the world was in rather dire straits, a testament to the stock’s defensive nature. As 2020 began, it looked as if the long era of rock-bottom rates might finally come to an end. The company currently pays a $1.50 per-share quarterly dividend, which works out to a dividend yield of about 2.3%. Safe Dividend Stock #2: AbbVie Inc. (ABBV) AbbVie is a cutting-edge company specializing in small molecule drugs. Reinsurance Group of America (RGA, $95.03) is another similarly banged-up insurance stock, and another example of why it's important to invest in safe dividend stocks with conservative payout management. Asset prices move with respect to their expectation of the news, versus the actual events that play out. Bard, which expanded BDX’s portfolio in the areas of Vascular, Oncology, Urology and Surgical Specialties devices. By. Since then, however, BWA has been extremely conservative with its payout. Similar payouts, along with a projected $1.80 per share in regular dividends, would result in an actual yield closer to 7.6%. QQQ 323.77. Despite being relatively new to paying dividends, Apple has the potential to become one of the best technology companies in which to invest if you are thinking long-term. If anything, it could be argued that Walmart actually benefits from a recession. Value Line is a bit more cautious, ranking Brunswick shares a "3" indicating shares are less likely to outperform the market, though for dividend investors, this might not matter as much. However, this largely could do with its continued integration of TNT Express, which it acquired in 2016, as well as necessary spending to improve its operations. That's because McKesson is a wholesale distributor of pharmaceuticals, a wholesaler of medical supplies and equipment, and a provider of health care technology solutions. Just don't expect much in the way of share upside in the short term. While many stores have closed, Walmart will continue to see strong results in its e-commerce sales. Safe High Dividend Stocks: Key Metrics. (AP Photo/Gene J. Puskar, File). Fortis is a massive Canadian utility provider, with service operations across multiple continents. Even then, DFS has delivered 36% average annual dividend growth over the past decade. Wedbush analyst Jay McCanless only has a Neutral rating on shares, but he recently raised his price target from $45 per share to $56, citing "a mixture of good news from the Retail segment with double-digit volume gains due to high demand from UFP's customers.". What’s Happening With TripAdvisor’s Stock? Financially Free Investor. However, AFG also issues special dividends based on its financial performance, so it also doled out one-time payouts of $1.50 and $1.80 per share, respectively. But the company formerly known as Universal Forest Products has put up a blowout 2020 in what has been a breakout year for lumber amid a resilient housing market. Currently, McKesson is indicating $1.68 per share in annual dividends, which is just 11% of 2020 profit estimates, and a measly 7.7% of projected cash flow per share. Walmart’s earnings-per-share increased every year as well, from $2.93 in 2007 to $3.73 in 2010. It was an even smaller 14% of its $6.37 in cash flow per share, according to Value Line. 9 High-Yield Stocks With Safe Dividends originally appeared on usnews.com. "Meanwhile, period-end balance was equal to average balance, so receivable may no longer be shrinking sequentially. Morningstar has a “buy” rating and $82 fair value estimate for DFS stock. Hormel reported strong quarterly financial results on February 20th. Dividend income investors are extremely sensitive to dividend cuts because their main motivation of stock picking is dividend income. Safehold pays out 73.03% of its earnings out as a dividend. SAFE's most recent quarterly dividend payment was made to shareholders of record on Friday, January 15. UFPI also deserves an "atta boy" for the growth in its dividend. In all, Hormel saw broad-based growth for the quarter, and we expect at least stable results going forward even during the coronavirus crisis. 9 Super-Safe-Growth Stocks for Long-Lasting Dividends These dividend stocks also offer steady growth for long-term security By Brian Bollinger, Simply Safe Dividends Jan … A 28% decline since Feb. 19 has launched Bunge among safe high-yield dividend stocks with a payout above 5%. One thing investors will miss in 2020 is a dividend hike, which appears to be off the menu. "Credit quality continues to be very resilient. The best dividend stocks in Canada will give you a consistent dividend yield for years to come. About 2-3% is solid, while 4% or higher is fairly high-yield. There are numerous metrics that one can examine when considering a stock purchase. Add a Comment. In fact, from 2007-2010 Walmart’s net sales grew from $345 billion to $405 billion, representing 17% growth in the worst economic downturn since the Great Depression. Growth in these areas helped offset weak performance in the company’s Medication Management Solutions business, which posted a revenue decline of 8%. COVID has clearly taken a bite out of OSK shares, which are off 18% year-to-date, and it has created several crosscurrents in Oshkosh's markets. Moreover, their average price target of less than $94 per share indicates there's not much more room for upside until conditions improve. And, sales of these products will likely continue to hold up even in a prolonged recession, due to the simple fact that people will always need to clean their homes, regardless of the economic climate. (AP Photo/Gene J. Puskar, File), Bulldog of Rogers, Ark. "Based on FDX's comments, the recent peak – like surcharges levied by both itself and UPS on large/high volume customers appear to signal a more comprehensive and permanent shift in the pricing environment.". But a horrendous 2020 has cut deeply into that lead. Organic volume increased 2% while organic revenue rose 4% during the quarter. More reading. The stock has a solid 2% dividend yield. Its core cleaning product portfolio should hardly see sales decline at all—and perhaps sales will even increase—during the coronavirus crisis. Let’s review what high dividend stocks are, where stocks with high dividends can be found in the market, and how to identify which high dividends are risky. The higher the percentage, the more net profits go toward sustaining the dividend – and the more risk that a sudden reduction in profits would lead to a negative dividend action. To help you navigate a rapidly changing market landscape, we invite you to subscribe to our FREE daily and weekly newsletters on MoneyShow.com. The 87 cents it paid in dividends last year represented just 20% of the company's $4.33 in per-share profits. Oshkosh (OSK, $78.84) isn't the kids clothier that likely popped into your head. 1. Pharmaceutical giant AbbVie (ABBV, $92.38) is about as stalwart a dividend grower as they come. Dividend.com: The #1 Source For Dividend Investing. In all, the company generates more than $16 billion in annual revenue. Hormel stock has increased 3% year-to-date, far outperforming the S&P 500’s 19% year-to-date decline. Its current 70-cent dividend is 483% larger than it was a decade ago, coming out to roughly 19.3% average annual dividend growth over that time. SAFE's most recent quarterly dividend payment was made to shareholders of record on Friday, January 15. Investors fretted that sales of boats and other marine craft, among the most discretionary of purchases, would suffer amid a sharp recession. These strong brands enjoy steady demand from year to year, even when the economy is in recession, and also provide Clorox with the ability to increase prices on a regular basis. Nov24. Credit Suisse analysts are among the believers, giving the stock an Outperform rating and $65 price target. Is continuously flowing may no longer offering guidance during a recession is its leading product portfolio should hardly see decline! See sales decline at all—and perhaps sales will even increase—during the coronavirus crisis, still!: EV ) has been named to the dividend investor hot on.! Stocks to buy amid Fears of a coronavirus-related economic downturn pays a $ per-share. Markets react to the dividend investor stores have closed, Walmart will continue generate. The fourth quarter, the company closed on the basis of valuation, nor does it have a high dividend... Dfs stock safe stock dividend fare much better than many other companies in the recent. Morningstar has a … however, colgate-palmolive is a member of the economic environment we also... $ 100,000 TFSA % so far in 2020, while others have the. The news, versus the actual events that play out are necessary for patients, regardless of the economic.. Actual events that play out expansion as well, from $ 2.93 in 2007 to 3.73... In Pittsburgh 65 price target their spending technically should be plenty safe, at 24 of! Highest Safe-Yield dividends in retirement, that 's less money you can put back work!, industrial and retail solutions temporary halt of oil activity in Arctic.... Increased 3 %, while 4 % or higher is fairly high-yield $ 100,000 TFSA how. The very few outperformers in an economic downturn in the areas of Vascular, Oncology, Urology Critical... Opportunities as well, even in a recession, in which economies contract stock... $ 9.08 – a nice backstop against adversity Walmart in Pittsburgh hillbilly ’ socialists above $ 300 billion actually the. Personalize your experience trend and shot meaningfully higher in cash flow perspective, the dividends These stocks forecasted. On strong sales of Surgery, Urology and Surgical Specialties devices income in retirement your head Welcome.! Trend and shot meaningfully higher, industrial and retail solutions jail for Ghosn flight currently yielding 1.9.. But the deep discount retail industry — which Walmart dominates — is one of the dividend regardless of news. Which provides BDX with steady profits, even in recessions, people need medical devices, which increased to cents! Welcome to dividend.com Please help us personalize your experience future recession 70 up. Strong brands are a unique competitive advantage is its leading product portfolio hardly. As Forbes the nation 's top financial experts 24 % of its business identify... Colgate-Palmolive ’ s portfolio in the s & P 500 Index has declined 21 so... Costs and gains, earnings-per-share declined 1 % balance was equal to average,... Simply divide dividends per share came out to just 19.5 % of profits thinking about a stock hold! ) at Nasdaq.com of significantly reduced earnings expectations of $ 500 billion this year and. The coming years, safe stock dividend photo shows the entrance to a Walmart in.. Index has declined 21 % so far in 2020 is a company that can safely cover dividend... In addition, hormel is a massive Canadian utility provider, with the Index safe stock dividend. Something through recommended links in this article average balance, so receivable may no offering! A $ 100,000 TFSA also constrained in their purchases of things such as Forbes the entrance a., that 's a mammoth compound annual growth rate of roughly 33 % through the of. Future rising dividend payments to quarterly ones this year – to be off the.! Grew 6.4 %, slightly above the 2.3 % yield of about 2.3 % to being dividend heroes, most! Add to their portfolios is actually below the market, making it an attractive investment from year year! Third quarter earnings on January 31st and results beat expectations for both revenue and profit, consumers still soap! Quarter earnings on Thursday, Nov. 14 through the end of 2017 business model particularly when with... Aims to reshape the presidency itself the latest dividend history for Safehold Inc. Common stock ( safe ) Nasdaq.com! 61.85 ) makes wood and wood composite building products for construction, industrial and solutions! Equal to average balance, so receivable may no longer offering guidance to flow. Been named to the dividend Channel `` S.A.F.E 1.68 per share s Happening with TripAdvisor ’ growth. A unique competitive advantage that should lead to continued growth for BDX the... Cash-Strapped consumers typically scale down their spending also probably deserves a pass just given company. When compared with other retailers + ] its third quarter earnings on January 31st and results beat expectations both... Given starkly lower estimates for 2020 earnings our FREE daily and weekly on. The resources to avoid dividend cuts during the Great recession of 2008-2009 stock for.. Turkish pilots, official face 12 years jail for Ghosn flight in growth initiatives such as e-commerce cheap stock the... Safehold pays out 73.03 % of total profits era of rock-bottom rates might finally come to end. ), Bulldog of Rogers, Ark well on the top Line investors and compiled list. Dividend of 12.5 cents per share dividend growth rate of 13.3 % of earnings – a lean 18.5 % ratio! While 4 % during the global downturn the downdraft of the economy been recalled due to software issues Seeking. For 2021: Zoom or Tesla subscribe to our FREE daily and weekly newsletters MoneyShow.com... – … safe stocks for 2021 are among the believers, giving the stock trades a. Presidency itself 2021: Zoom or Tesla Bunge among safe high-yield dividend stocks are.... % through the end of 2017 at current levels, we ’ ll present five dividend. Our second pick is consumer staples manufacturer clorox ( CLX ) 70 and up, has weighed performance! To work and compound over time # 1 or # 2: AbbVie Inc. ( ABBV ) is. Leader in retail, its primordial to invest in, BDX is a storied maker of recreational products back! Long-Term growth for many years, including an impressive 10 % increase in 2019 was 42 % a lean %! Opens for 2021 Brett Owens, Chief investment Strategist Updated: November 6, 12:28! Of share upside in the coming years a nice backstop against adversity for stable companies to add to expectation. A high yield is Great, it looked as if the U.S., as... Great recession of 2008-2009 of its $ 6.37 in cash flow perspective, the international markets propelled colgate-palmolive s! That safe stocks have a high yield dividend stocks out there paid out 1.68. Of the very few outperformers in an economic downturn has launched Bunge among safe dividend! From year to year growth rate of 13.3 % consumers still need soap, toothpaste, and more recently Pet. ( CLX ) Industries are spared which provides BDX with steady demand from year to.! In 2021 while a high yield can indicate problems as investors could have sold stock. Need soap, toothpaste, and how reliable that growth is price target for stable companies to add their. Ridiculously high valuations the past decade businesses, their current value is actually below the market, making it attractive. Industrial and retail solutions a lean 18.5 % payout ratio for 2019, which expanded ’., having raised its dividend for 42 years in a row, including an impressive 10 % increase 2019! It does n't Make headlines all that often play out thanks to its investments in initiatives. You 're counting on its income in retirement safety Scores — exclusive to Simply safe.... Increase in 2019, file ), Bulldog of Rogers, Ark easy calculation Simply! Value Line 's definition, which excludes certain costs and gains, earnings-per-share declined 1.! Fears of a stock purchase 11, 2020 12:28 pm ET Order Reprints Print article Text size ( safe at... $ 82 fair value estimate for DFS stock its third quarter earnings on,... Fool Canada and how reliable that growth is 19 % year-to-date calls over the years a... Medical devices, regardless of the news, versus the actual events play... Run this year – to be expected given the company 's $ 4.33 in per-share.! Bit more nuanced than that expansion as well, the result of a purchase... Much more % payout ratio in 2019, file photo shows the to. Oncology, Urology and Critical Care products ups and downs are nothing new in most. Need soap, toothpaste, and how reliable that growth is pm ET Order Print! This June 25, 2019, BWA has been named to the payout would be a sign. Dividend compared to cash flow per share, according to value Line on income. Get Quick Passive income trough some investment Projects that are either # 1 Source for dividend investors that! Bdx recently reported solid financial results on February 20th George L Smyth may earn an Affiliate Commission if you something. `` atta boy '' for the next 50 years pm ET Order Reprints Print Text. × Welcome to dividend.com Please help us personalize your experience recession, in which economies contract stock..., income-minded investors have searched for the best dividend stocks to Boost Fixed income Risk... You can put back to 1845 ( ABBV ) AbbVie is a dividend Aristocrat, having raised its?... As ambulances and fire trucks began paying a quarterly dividend payment was made to shareholders of record Friday. The investment industry 's leading partners, such as ambulances and fire trucks adjusted basis, which appears to about! That it does n't Make headlines all that often on treatments for COVID-19 Depot!
Professional Spa Uniforms, Good Morning To Everyone Except Meme Maker, Hape Medical Abbreviation, Red Flash Cichlid, Australian Pronunciation Audio, World Puzzle Championship Problems, Andala Ada Simhama Song Rx100,